Celsius Onboards Advisers ahead of Potential Bankruptcy Filing
- Reportedly Celsius has hired an unknown number of restructuring consultants from the advisory firm Alvarez & Marsal to advise on a potential bankruptcy filing.
- Earlier this month, the firm had also hired lawyers in an attempt to restructure the company amid its rumored insolvency.
Crypto Lending Platform Celsius had hired unknown number restructuring consultants from advisory firm Alvarez & Marsal to advise on a potential bankruptcy filing, according to a Wall Street Journal report. The latest development follows the report from June 14. The earlier report points out Celsius had hired lawyers in an attempt to restructure the company amid its rumored insolvency
Earlier this month, Celsius announced it was pausing all withdrawals, swaps and transfers between accounts due to “extreme market conditions.” The price of Celsius Token (CEL) fell over 50 percent after it announced the decision to pause withdrawals. Recently, Celsius’ lead investor BnkToTheFuture and its co-founder Simon Dixon have offered to assist the firm by deploying similar “financial innovation” used to save cryptocurrency exchange Bitfinex from liquidation in 2016.
According to recent reports, monetary institution Goldman Sachs is also looking to raise $2 billion from investors to purchase distressed assets from Celsius. As the fear of Celsius liquidation has been triggered in the market, some crypto experts believe that Celsius will recover from this troubled situation without being liquidated. Crypto market analysts affirms that if the Bitcoin market price falls below $14,000, then the Celsius platform will face liquidation scenarios. Bitcoin tumbled as much as 75% from last year’s record $68,990.90 to the June 18 low near $17,800.
Reports suggest that the troubled firm is looking for other strategic alternatives, such as a financial restructuring, apart from its efforts to solve its current problems. Celsius is also trying to find more investors who would be able to provide financing options for the company.